Toyota Australia has passed on the savings from a higher Luxury Car Tax threshold, put in place from the beginning of the new financial year on July 1st.

The changes to the LCT see the threshold raised in line with inflation to apply to vehicles priced above $64,132, a step up of $948 over the previous year.

Vehicles using less than 7.0 l/100km of fuel fall under a separate tax regime, with LCT applied from a $75,526 threshold, raised for the first time in six years by $151

Toyota Prado Kakadu

Toyota Prado Kakadu

The change means a flat-rate saving of $284 on high-spec versions of the Prado and Tarago, and the entire LandCruiser 200 Series range.

Pricing for the Kluger Grande AWD is also reduced by $284, while Kluger Grande 2WD drops by $267 coming in below the new threshold.

Toyota’s Marketing director Tony Cramb used the pricing announcement to again renew calls for the Federal Government to abolish the Luxury Car Tax.

“This is an inequitable tax because it applies only to vehicles and not to other high-end goods such as luxury boats, jewellery and watches,” Mr Cramb said. “It is unfair that such a discriminatory tax hits consumers who are already contributing significantly to government coffers through GST, stamp duty and registration fees when buying a new car, as well as hefty taxes on fuel.” “Last year, more than 13,500 new Toyota owners were hit by this inefficient, punitive and poorly designed measure,” he said.

Toyota’s financial year price reductions are nothing new, with the automaker having done so in previous years in line with adjustments to the tax threshold. Although usually not the only company that passes on LCT savings, Toyota is the first to make an official announcement this year.